ICICI Securitie's research report on Abott India
Abbott India’s (Abbott) Q4FY24 revenue growth of 7% was slightly below expectation of 9%; however, its 9.4% growth in FY24 was still ahead of industry growth of 8%. Sequential drop of 197/407bps in gross/EBITDA margin was on account of higher third-party sourcing and higher overhead cost. MNC companies like Abbott take timely price hikes on their non-NLEM portfolio which along with operating leverage may drive margins hereon.
Outlook
We trim our revenue estimates by 2-3% for FY25-26E and EPS estimates by 2% for FY26E to factor slowdown in key brands. The stock currently trades at valuations of 39.2x FY25E and 34.1x FY26E earnings and EV/EBITDA multiple of 31.1x FY25E and 26.8x FY26E. We maintain BUY with a revised target price of INR 32,500 (INR 33,000 earlier) based on 42x FY26E EPS.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
